In the US stock market on the 26th, the S & P 500 stock index and the Dow Jones Industrial Average fell continuously. Federal Reserve Chairman Powell has suggested that US monetary authorities are steadily removing monetary easing measures in response to high inflation. Yields on US Treasuries have risen sharply across the board.
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The S & P 500 species rose by more than 2% from the previous day, but turned down at a later time.The Federal Open Market Committee (FOMC) recognizes that the start of rate hikes will be “near” appropriate.Shown in a statement. He also suggested that bond holdings would be reduced after the start of rate hikes.Powell said the FOMC will meet at the March meeting.Declared that he is conscious of starting a rate hike. We did not rule out the possibility of deciding to raise rates at each meeting. Inflation has “slightly worsened” since the meeting in December last year.
FOMC Starts Rate Hike “Near” Appropriately-Afterwards to Reduce Assets
S & P 500 species are 4349.93, down 0.2% from the previous day. The Dow Jones Industrial Average is down $ 129.64 (0.4%) to $ 34168.09. The Nasdaq Composite closed slightly positive.
“The Fed is willing to start aggressively raising rates, raising rates at the next meeting at the earliest, and showing signs of slowing inflation,” said Matt Weller, global head of research at Forex.com. Powell has shown that he will continue to do so until it is done. “
Regarding the increasing geopolitical risk, the US Embassy in Ukraine urged US civilians staying in Ukraine to consider immediate evacuation by available means of transportation. It is said that it is because the threat of military action by Russia is increasing.
In the US Treasury market, as of 4:05 pm New York time, 10-year bond yields have risen 10 basis points (bp, 1bp = 0.01%) to 1.87%. Yields on 2-year bonds rose further to 1.15%.
In the foreign exchange market, the dollar has risen against all 10 major currencies. The background is a sharp rise in US Treasury yields. The Bloomberg Dollar Spot Index, which shows the movement of the dollar against the 10 major currencies, has recovered to its highest level in a month.
The dollar index rose 0.5%. As of 4:05 pm New York time, the dollar is up 0.7% against the yen to 1 dollar = 114.62 yen. The euro is down 0.5% against the dollar at 1 euro = 1.1240 dollars.
New York crude oil futures prices continue to grow. Crude oil inventories at a major storage facility in Cushing, Oklahoma have fallen for the third straight week, and the situation in Ukraine is tense. The North Sea Brent futures on the London ICE have temporarily hit the $ 90 mark for the first time in about seven years since 2014.
The New York Mercantile Exchange (NYMEX) West Texas Intermediate (WTI) futures March contract ends at $ 87.35 a barrel, up $ 1.75 (2%) from the previous day. Brent’s March contract ended at $ 89.96, up $ 1.76.
Brent Crude Futures Market Trends
Bloomberg
The gold market has fallen back. Spot prices have widened their decline after the FOMC acknowledged that the start of a US interest rate hike would be “near” appropriate. After 3:00 pm New York time, it fell by more than 1.6% from the previous day.
The April contract for gold futures on the New York Board of Trade (COMEX), which closed before the FOMC statement was released, is just $ 1832, down 1.2% from the previous day.
Original title:Stocks Drop, Yields Jump on Hawkish Powell Signals: Markets Wrap（抜粋）、Treasury Yields Surge as Fed Tees Up Hikes And Asset Reductions（抜粋）、Dollar Hits 2-Week High After Fed Decision, Powell: Inside G-10（抜粋）、Brent Rises to Highest Since 2014 Amid Geopolitical Tensions（抜粋）、Gold Holds Losses After Fed Signals Rate Hikes Coming Soon（抜粋）、Spot Gold Drops Most in Almost Three Weeks as Equities Rebound （抜粋）
